Your Down Payment

Many folks who are looking to purchase a new house can easily qualify for various loan programs, but they don't have much to put up a down payment. Here are a few straightforward ways to get together a down payment

Tighten your belt and save. Look for ways you can trim your expenditures to put away money for a down payment. You could also try enrolling in an automatic savings plan at your bank to automatically have a specific amount from your paycheck moved into a savings account. You could look into some big expenses in your budget that you can give up, or trim, at least temporarily. For example, you might move into less expensive housing, or stay local for your vacation.

Work a second job and sell things you don't need. Maybe you can find an additional job to get your down payment money. In addition, you can put together a comprehensive list of items you may be able to sell. Broken gold jewelry can bring a good price from local jewelers. A closetful of small things may add up to a nice sum at a garage or tag sale. Also, you can look into selling any investments you hold.

Tap into retirement funds. Research the details for your particular plan. You may borrow funds from a 401(k) plan for a down payment or withdraw from an IRA. Be sure you know about any penalties, the way this will affect on your income taxes, and repayment terms.

Ask for help from generous members of your family. Many homebuyers somtimes receive down payment help from gracious parents and other family members who may be anxious to help them get into their first home. Your family members may be willing to help you reach the milestone of buying your own home.

Contact housing finance agencies. Special mortgage loans are extended to homebuyers in specific circumstances, like low income buyers or homebuyers looking to remodel houses in a targeted part of town, among others. With the help of a housing finance agency, you may be given a below market interest rate, down payment help and other advantages. These types of agencies can help you with a lower interest rate, get you your down payment, and offer other benefits. The principal goal of not-for-profit housing finance agencies is to promote residence ownership in targeted places.

Explore no-down and low-down mortgage loans.

• Federal Housing Administration (FHA) mortgages

  The Federal Housing Administration (FHA), which functions as part of the U.S. Department of Housing and Urban Development (HUD), plays a vital part in assisting low to moderate-income Americans get mortgages. An office of the U.S. Department of Housing and Urban Development(HUD), FHA (Federal Housing Administration) aids individuals who need to get mortgage loans. FHA aids first-time buyers and others who might not be eligible for a typical mortgage by themselves, by offering mortgage insurance to the lenders. Interest rates with an FHA mortgage are usually the current interest rate, but the down payment amounts with an FHA loan will be lower than those of conventional loans. The down payment can go as low as 3 percent and the closing costs may be financed in the mortgage loan.

• VA mortgages

  VA loans are backed by the Department of Veterans Affairs. Service persons and veterans can receive a VA loan, which usually offers a low interest rate, no down payment, and reduced closing costs. While it's true that the mortgage loans aren't actually financed by the VA, the office verfifies applicants by providing eligibility certificates.

• Piggy-back loans

  You may fund your down payment using a second mortgage that closes along with the first. Usually the piggyback loan is for 10 percent of the home's price, and the first mortgage finances 80 percent. In contrast to the traditional 20 percent down payment, the homebuyer will just have to pull together the remaining 10 percent.

• Carry-Back loans

  In a "carry back" situation, the seller agrees to loan you some of his home equity to help you with your down payment money. In this scenario, you would finance the largest portion of the purchase price with a traditional mortgage lender and finance the remainder with the seller. Generally, this type of second mortgage has a higher rate of interest.

No matter how you gather your down payment, the thrill of reaching the goal of owning your own home will be just as sweet!

Need to talk about down payment options? Call us at 7209331025.